What we verified in “Chapter 7 vs. Chapter 13 bankruptcy: what happens to your home”

Statements and where we checked them

The statements with rules, figures or dates, with the exact place in the source and the date we checked them.

1. According to the federal courts, in Chapter 7 the court appoints a trustee who administers the case and sells the assets that are not exempt; federal law lets you protect some property because it is exempt; filing automatically stops most collection actions against you and your property; the meeting of creditors is held between 21 and 40 days after filing, and you must attend and answer questions; and the discharge generally comes 60 to 90 days after the date first set for that meeting.

   Sources 1 · Chapter 7 - Bankruptcy Basics: 'appoints an impartial case trustee to administer the case and liquidate the debtor's nonexempt assets'; 'to protect some property from the claims of creditors because it is exempt'; 'automatically stays (stops) most collection actions against the debtor or the debtor's property'; 'Between 21 and 40 days after the petition is filed, the case trustee ... will hold a meeting of creditors'; 'The debtor must attend the meeting'; 'generally, 60 to 90 days after the date first set for the meeting of creditors' · Checked October 31, 2026

2. According to the federal courts, a Chapter 7 discharge does not extinguish a lien on property, secured creditors may keep some rights to seize the property securing a debt, and someone who wants to keep secured property can reaffirm the debt: an agreement under which you stay liable and the creditor does not take the property while you keep paying.

   Sources 1 · Chapter 7 - Bankruptcy Basics: 'a bankruptcy discharge does not extinguish a lien on property'; 'Secured creditors may retain some rights to seize property securing an underlying debt even after a discharge is granted'; 'may decide to reaffirm the debt'; 'A reaffirmation is an agreement between the debtor and the creditor that the debtor will remain liable' · Checked October 31, 2026

3. According to the federal courts, debts not discharged in Chapter 7 include alimony and child support and certain taxes; and if your current monthly income is more than your state's median, a means test applies.

   Sources 1 · Chapter 7 - Bankruptcy Basics: 'Debts not discharged include debts for alimony and child support, certain taxes'; 'If the debtor's current monthly income is more than the state median, the Bankruptcy Code requires application of a means test' · Checked October 31, 2026

4. According to the federal courts, Chapter 7 carries a $245 case filing fee, a $75 administrative fee and a $15 trustee surcharge; with the court's permission you can pay in installments; and if your income is less than 150% of the poverty level and you cannot pay even in installments, the court may waive the fees.

   Sources 1 · Chapter 7 - Bankruptcy Basics: 'The courts must charge a $245 case filing fee, a $75 miscellaneous administrative fee, and a $15 trustee surcharge'; 'With the court's permission, however, individual debtors may pay in installments'; 'If the debtor's income is less than 150% of the poverty level ... the court may waive the requirement that the fees be paid' · Checked October 31, 2026

5. According to the federal courts, Chapter 13 is for individuals with regular income; you propose a plan to pay creditors over three to five years; most significantly, it gives you an opportunity to save your home from foreclosure, because you can catch up on past-due mortgage payments over time; but you must keep making every mortgage payment that comes due during the plan on time; and you start paying the trustee within 30 days.

   Sources 2 · Chapter 13 - Bankruptcy Basics: 'adjustment of debts of an individual with regular income'; 'propose a repayment plan to make installments to creditors over three to five years'; 'chapter 13 offers individuals an opportunity to save their homes from foreclosure'; 'may cure delinquent mortgage payments over time'; 'must still make all mortgage payments that come due during the chapter 13 plan on time'; 'the debtor must start making plan payments to the trustee' · Checked October 31, 2026

6. According to the federal courts, Chapter 13 has a special protection for people who signed debts with you (co-debtors); it carries a $235 filing fee and a $75 administrative fee; if you stop making plan payments, the court may dismiss the case or convert it to Chapter 7; and the discharge comes after you finish all plan payments and the financial management course.

   Sources 2 · Chapter 13 - Bankruptcy Basics: 'a special automatic stay provision that protects co-debtors'; 'The courts must charge a $235 case filing fee and a $75 miscellaneous administrative fee'; 'the court may dismiss the case or convert it to a liquidation case under chapter 7'; 'entitled to a discharge upon completion of all payments under the chapter 13 plan'; 'completed an approved course in financial management' · Checked October 31, 2026

7. According to the federal courts, to file a Chapter 7 or Chapter 13 bankruptcy you must have received credit counseling from an approved agency within the 180 days before filing.

   Sources 2 · Chapter 13 - Bankruptcy Basics: 'within 180 days before filing, received credit counseling from an approved credit counseling agency' (same wording in Chapter 7 - Bankruptcy Basics) · Checked October 31, 2026

8. According to the Justice Department's U.S. Trustee Program, it publishes the list of agencies approved to give the counseling you must take before you can file for bankruptcy; many offer services in other languages and the list can be filtered for Spanish; in some places counseling may be available only by internet and telephone; and cases in Alabama and North Carolina are not under this program but under each district's Bankruptcy Administrator.

   Sources 4 · List of Credit Counseling Agencies Approved Pursuant to 11 U.S.C. 111: 'approved to provide counseling that individuals must take before they are eligible to file for bankruptcy protection'; 'Many approved credit counseling agencies offer services in languages other than English'; 'credit counseling may be available only by internet and telephone, and not in person'; 'Bankruptcy cases in Alabama and North Carolina are not under the jurisdiction of the United States Trustee Program' · Checked October 31, 2026

9. According to the U.S. Trustee Program, credit counseling is taken before you file and, if you do not complete it, the case could be dismissed; debtor education is a separate course taken after you file, and you generally must complete it to receive a discharge.

   Sources 5 · Credit Counseling & Debtor Education Information: 'Credit counseling (CC) must be obtained before an individual files for bankruptcy'; 'Debtor education (DE) is a separate course that must be taken after an individual files for bankruptcy'; debtors generally must complete it to receive a discharge; if CC is not completed before filing, the case could be dismissed · Checked October 31, 2026

10. Under the Justice Department regulation (28 CFR 58.21), an approved agency must waive its fee in whole or in part when you show you cannot pay it, and you are presumed unable to pay if your household's current income is less than 150% of the poverty guidelines.

    Sources 6 · 28 CFR §58.21(b)(1): 'An agency shall waive the fee in whole or in part whenever a client demonstrates a lack of ability to pay the fee'; (b)(1)(i): 'A client presumptively lacks the ability to pay the fee if the client's household current income is less than 150 percent' of the poverty guidelines · Checked October 31, 2026

11. Under the Bankruptcy Code (11 U.S.C. §522), you can protect the property on the federal list or, instead, on your state's list, unless your state does not allow the federal list; the state that counts is generally where you lived for the 730 days before filing; the federal homestead exemption protects your interest in the home where you or a dependent live up to a cap that is adjusted over time ($31,575 since April 1, 2025); and in a joint case the section applies separately to each debtor.

    Sources 7 · 11 U.S.C. §522(b)(1)-(2): 'may exempt from property of the estate the property listed in either paragraph (2) or, in the alternative, paragraph (3)'; 'unless the State law ... specifically does not so authorize'; (b)(3)(A): 'located for the 730 days immediately preceding the date of the filing of the petition'; (d)(1): 'aggregate interest ... in real property or personal property that the debtor or a dependent of the debtor uses as a residence', amount adjusted effective April 1, 2025 to $31,575 (statutory notes); (m): 'shall apply separately with respect to each debtor in a joint case' · Checked October 31, 2026

12. Under the Fair Credit Reporting Act (15 U.S.C. §1681c), a bankruptcy case can appear on your credit report for up to 10 years from the order for relief; that limit does not apply when the report is used for credit of $150,000 or more; and the report must say which chapter the case was under if the source provides it.

    Sources 8 · 15 U.S.C. §1681c(a)(1): 'Cases under title 11 ... that, from the date of entry of the order for relief ... antedate the report by more than 10 years'; (b)(1): 'a credit transaction involving ... a principal amount of $150,000 or more'; (d)(1): 'shall include in the report an identification of the chapter of such title 11' · Checked October 31, 2026

13. According to Fannie Mae's Selling Guide (B3-5.3-07), for a conventional loan after Chapter 7 the wait is four years from the discharge or dismissal, or two years if you can document extenuating circumstances; after Chapter 13 it is two years from the discharge (no exceptions) or four from the dismissal (two with extenuating circumstances); with more than one case in the past 7 years, five years; and you must have re-established traditional credit.

    Sources 9 · Selling Guide B3-5.3-07 (08/07/2019), Significant Derogatory Credit Events: Chapter 7 or 11 'A four-year waiting period is required, measured from the discharge or dismissal date'; 'A two-year waiting period is permitted if extenuating circumstances can be documented'; Chapter 13 'two years from the discharge date' / 'four years from the dismissal date'; 'There are no exceptions permitted to the two-year waiting period after a Chapter 13 discharge'; multiple filings '5 years if more than one filing within the past 7 years'; 'Nontraditional credit or thin files are not acceptable' · Checked October 31, 2026

14. According to HUD Handbook 4000.1, a Chapter 7 does not disqualify you from an FHA loan if at least two years have passed since the discharge and in that time you re-established good credit or chose not to take on new credit, or 12 to 24 months if the bankruptcy was caused by circumstances beyond your control and you have since managed your money responsibly; and a Chapter 13 does not disqualify you if at least 12 months of the plan have passed, you made every payment on time and the bankruptcy court gave you written permission.

    Sources 10 · Handbook 4000.1 (last revised August 12, 2026), II.A.5, '(H) Bankruptcy (Manual)', p. 288: 'at least two years have elapsed since the date of the bankruptcy discharge'; 'reestablished good credit; or chosen not to incur new credit obligations'; 'less than two years, but not less than 12 months ... extenuating circumstances beyond the Borrower's control'; Chapter 13 'at least 12 months of the payout period under the bankruptcy has elapsed'; 'all required payments have been made on time'; 'written permission from bankruptcy court' · Checked October 31, 2026

15. According to the federal courts, you can file bankruptcy without an attorney, but the advice of a qualified attorney is strongly recommended because it takes an understanding of legal issues; bankruptcy petition preparers can only enter information into forms and cannot give legal advice or take payment for court fees; and if you cannot afford an attorney you may qualify for free legal services.

    Sources 3 · Filing Without an Attorney: 'Individuals can file bankruptcy without an attorney, which is called filing pro se'; 'seeking the advice of a qualified attorney is strongly recommended'; 'By law, preparers can only enter information into forms'; 'They are prohibited from providing legal advice'; 'cannot sign documents on your behalf or receive payment for court fees'; 'If you are unable to afford an attorney, you may qualify for free legal services' · Checked October 31, 2026

16. According to the Legal Services Corporation (LSC), it is an independent nonprofit established by Congress to fund civil legal aid for low-income Americans, it funds organizations in every state, the District of Columbia and the territories, and on its website you enter an address or city to find the nearest organization.

    Sources 11 · I Need Legal Help: 'LSC is an independent nonprofit established by Congress in 1974 to provide financial support for civil legal aid to low-income Americans'; 'in every state, the District of Columbia, and U.S. Territories'; 'enter an address or city below to find an LSC-funded legal aid organization near you' · Checked October 31, 2026

17. According to the CFPB, the counseling agencies in its search tool are approved by HUD and offer independent advice, often at little or no cost, on buying a home, renting, defaults, forbearances, foreclosures and credit; you search by ZIP code; and not every agency offers every service.

    Sources 12 · Find a Housing Counselor: 'approved by the U.S. Department of Housing and Urban Development (HUD)'; 'offer independent advice, often at little or no cost to you'; 'buying a home, renting, defaults, forbearances, foreclosures, and credit issues'; 'Search by ZIP code'; 'Not every housing counselor offers all services' · Checked October 31, 2026